Company Announcements

Norsk Hydro: Hydro Rein and Macquarie Asset Management to develop hybrid wind and solar project in Brazil to supply Alunorte and Paragominas

Source: OMX
Norsk Hydro: Hydro Rein and Macquarie Asset Management to develop hybrid wind and solar project in Brazil to supply Alunorte and Paragominas

Hydro Rein and Macquarie Asset Management’s Green Investment Group (GIG) have entered into agreements to form a joint venture to build and operate Feijão, a 586 MW combined wind and solar power project in the northeast of Brazil.

The project will supply 100% of the electricity required for Hydro’s bauxite mine Paragominas and will further reduce carbon emissions from Hydro’s alumina refinery Alunorte, by enabling coal replacement towards 2030. Alunorte and Paragominas have both signed long-term US dollar power purchase agreements (PPAs) with Feijão under Brazilian self-production structure, enabling the project as sole off-takers. The project will be an important enabler to reach Hydro’s target of a 30% CO2 reduction by 2030.

The hybrid wind and solar project is located in the states of Piauí and Pernambuco, and will be built in one of the largest wind farm clusters in Latin America. 80 turbines with a combined capacity of 456 MW will be constructed in phase one, with the option to develop up to 130 MW of solar power production in phase two.

Final investment decision for the wind farm is expected in the fourth quarter of 2022, while an investment decision for the solar project will be taken at a later stage.

“We are very pleased to play a part in developing more renewable energy in Brazil together with Green Investment Group. This project is an important milestone in the efforts to decarbonize Alunorte and an important milestone for Hydro Rein developing its portfolio of Brazilian assets,” says Olivier Girardot, Head of Hydro Rein.

Total capital expenditure for the wind farm is estimated at USD  700 million (100% basis). Hydro Rein’s ownership share will be 49.9%, with the remaining 50.1% held by the Macquarie Green Investment Group Renewable Energy Fund 2.

“Brazil has vast potential for wind development, and we are delighted to be partnering with Hydro on this late-stage project. Hydro’s Brazilian energy market expertise and regional presence, combined with our global wind and infrastructure experience, make for a strong partnership that can provide a boost to Brazil’s supply chain and the region’s ambitions to engage with the global wind opportunity,” says Mark Dooley, Global Head of Green Investment Group.

About Hydro Rein

Hydro Rein was established in 2021 as part of Hydro’s strategy to grow in renewables. The company aims at becoming the preferred supplier of renewable power and other energy solutions for industrial clients.

Hydro Rein has a significant pipeline of wind and solar projects in Brazil and the Nordics for long-term power supply to Hydro and other industrial offtakers. Hydro Rein is also developing a range of energy solutions to assist industries with the management and optimization of its energy consumption and storage behind-the-meter.

About Green Investment Group  

Green Investment Group (GIG) is a specialist green investor within Macquarie Asset Management, and a global leader in the development of companies, assets and technologies that aim to accelerate the global transition to net zero. Initially launched by the UK Government in 2012 as the Green Investment Bank, it was the first institution of its type in the world.

Acquired by Macquarie in 2017, GIG has grown to become one of the world’s largest green investors with a development pipeline of more than 35 GW in over 25 markets, spanning established renewables and emerging green technologies.

Investor contact:
Line Haugetraa
+47 41406376
Line.Haugetraa@hydro.com

Media contact:
Halvor Molland
+47 92979797
Halvor.Molland@hydro.com